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In this paper, we introduce a new totally distributed algorithm for combining power and rate control in wireless communication systems. The main feature of this algorithm over the multi-objective distributed power and rate control (MODPRC) algorithm presented in M. Elmusrati and H. Koivo (2003), is that the actual CIR is not needed to update the power and the rate. It works with the on-off commands of the power control in existing cellular communication systems. The algorithm is based on minimizing a multi-objective cost function. In this paper we defined three objectives. The objectives are minimizing the transmitted power, achieving at least the minimum carrier to interference ratio (CIR), which is defined at the minimum data rate, and achieving the maximum CIR, which is defined at maximum data rate. An optimized solution can be obtained by using a multi-objective optimization technique. The suggested algorithm is simple to implement and efficient. The simulations carried out on the UMTS specifications indicate that our algorithm gives a very good performance in terms of data rate, outage probability, and transmission power consumption.